Small Business Finance Tips » Real Estate

Investment Predictions in Central and Eastern Europe For 2010

admin — Thu, 22 Dec 2011 22:28:44 +0000

As yields on commercial investment property in Prague fell further and further, it appeared that there was an increasing gap between prices that would have made sense in terms of underlying value, and the prices that were actually being achieved. I was one of those who did not believe that yields would fall below 6% because I could not see a rational case to justify such prices. Yet prices continued to rise. With hindsight, it is easy to say that 5.5% initial yields were a reflection of an overheated market. After all, despite all the undoubted progress made by Prague’s investment property market in the last decade, it is still not London or New York. Apart from any other considerations, there is the question of covenant strength which should underpin investors’ perceptions. The significant differences in legal framework and standard lease terms between markets mean that the all risks yield is not a reliable means of comparing one national market with another – we are simply not comparing like with like. Add to this the fact that many “international” tenants are local subsidiaries, and the security of income can again be questioned. What drove prices to these levels was largely a matter of too much equity and easily available debt chasing too little quality product, rather than a considered reflection of the worth of an investment.

The result has been a dislocate between price and worth. In a competitive market, market values (a measure of prices achieved, or value in exchange) should track measures of investment worth (the value of a property to a particular user or class of users). Observations at the height of the market that falling initial yields were in a sense “over-valuing” properties were effectively saying that prices were rising at a faster rate than worth which would reflect the “fundamental”, “underlying” or “long term” value of a particular property.

This gives rise to a particular issue for valuers whose task is to interpret market data and provide an opinion of price, rather than to come to a judgement about whether the prices being achieved accurately reflect the worth of the properties being traded. When prices were rising rapidly there was, quite rightly, pressure for valuations to keep pace with movements in the market. Now, we are in a quite different world, where many clients are reluctant to accept that the market value of their property has fallen to the extent that it has.

We should perhaps not be too quick to criticise those clients who still insist that the value of their property is accurately reflected by a 6% all risks yield when the only evidence available suggests that a level around or slightly above 7% is closer to the truth. What is worth considering in this context is that in illiquid and fast changing markets such as we are currently experiencing, price and worth can part company to a significant degree. When clients talk of sub 6% yield expectations, this clearly does not reflect current market value which is after all an opinion of price or value in exchange, but it may well reflect their estimation of investment worth. We are all aware of numerous examples of properties which are technically “for sale” but at prices which are simply not achievable in this market. Rather than complaining that vendors are unrealistic or, worse, ignorant, perhaps we should be paying closer attention to what these “prices” are telling us, which is that the worth to vendors is higher than the price which could be achieved on the open market. The lack of deals and hence of transaction based evidence serves to highlight the mismatch between the expectations of vendors and purchasers. Vendors remain generally unwilling to dispose of property at figures reflecting current market value, whilst purchasers are only prepared to buy at a price below their calculations of long term worth, partly in the expectation that in a falling market prices may yet have further to go.

Aside from other considerations, the task of valuers preparing market valuations in such times is much more difficult. Whilst there is some concensus that we are experiencing a fast changing market, there is at the same time precious little transactional evidence as so few deals are closing. Even with respect to those transactions which have been closed and reported, data remains far from clear with a knock-on effect on reliability. This lack of transparency is nothing new in the Czech market, and those who have been valuing properties here for a decade or more will recall the times in the early days of Prague’s investment property market when one transaction (almost irrespective of the details of the deal, accuracy of reporting, lease terms, rental levels, building location etc) was taken as a benchmark for the entire market – at least until the next deal came along. Think, for example of the Mediatel and Unilever buildings – the first time around, that is – when these sales were taken as representing “market yields” of around 10.5%…

Under current conditions, those of us who have been active on this market since the late 1990s are experiencing something close to deja vu, trying to value properties based on little and questionable comparable data. Of course, in a way this only serves to support the argument that valuation is (and, for that matter, has always been) more of an art than a science, but I would argue that the provision of opinions of investment worth in this market would, at least in part, help and accordingly would, if not expect then at least hope that such calculations are requested and undertaken more frequently in the coming year.

It is the task of professional advisers in general and valuers in particular to highlight the difference between value and worth and to advise clients accordingly. In such a market there is arguably a substantial benefit for clients to understand these concepts and to be provided with an opinion of investment worth in addition to market value. Such advice would certainly help clients to gain a better understanding of their property in the context of the current market and the provision of this type of advice is something which should become an increasingly important indicator in a market such as that we are currently faced with.

Concrete Rot or Concrete Cancer

admin — Wed, 14 Dec 2011 15:06:06 +0000

If you want a lifetime job, it could be painting the Sydney Harbour Bridge – once you finish you probably have to start at the other end again. The painting continues in order to stop the steel from corroding, and steel corrosion is what causes concrete rot, otherwise called concrete cancer or spalling.

How does concrete ‘rot’ ?

Concrete is used in most commercial and residential buildings in a host of applications such as slabs, stairways, post and columns, support beams, balconies and verandahs, walls, pathways and pools. Huge volumes of concrete are involved in structures like bridges, wharves and high-rise towers. The concrete is generally reinforced using steel bars or mesh and in the larger developments significant amounts of steel are required for added strength.

The enemies of reinforced concrete are water and air. If these elements gain access to the steel enclosed within the concrete it can corrode – the steel expands as it breaks down and fractures the surrounding concrete. As the concrete cracks and crumbles, there is even greater opportunity for water and air to contact the reinforcing steel and the process intensifies. There are obvious safety issues as the structural integrity of the concrete is reduced.

How to identify concrete rot

It can be happening unseen within the concrete but as it continues it becomes more evident. You may notice rust marks running down the concrete, or the concrete flaking, cracking or crumbling. In extreme cases, large sections of the concrete will fall away, exposing the rusted reinforcing steel. Remedial treatment can involve substantial and expensive corrective measures.

A professional building inspection can identify the problem or warn of potential for future trouble. It can be water pooling somewhere, small cracks in the concrete or reinforcing too close to the concrete surface. Prevention is certainly better than cure with concrete rot – it may simply be a matter of improving drainage, painting a surface or sealing cracks with some sort of mortar or epoxy filler. If you have any concerns about concrete rot, it pays to get some expert advice.

I do like to be beside the seaside

Well yes, most of us do but it’s here that concrete rot can be even more prevalent as chlorides in the moist, salty air react more aggressively with the reinforcing steel. Concrete rot is an ever-present issue in locations close to the sea and property owners need to be constantly on the lookout for any signs of deterioration and to ensure that protective measures are maintained.

The same can be said for chlorides associated with swimming-pool chlorine or saltwater pools.

Also, there is often moisture close to the ground surface in beachfront blocks and water can soak up into the structure. Large buildings with basement or underground car parks can experience the same problem with groundwater seepage.

In summary, concrete rot is a common problem. It can lead to significant structural damage which may be difficult and expensive to repair. It is not always easy to detect, it can result in serious safety implications and it can be avoided by getting expert advice and using the right materials and appropriate construction guidelines.

Are Single-Family or Multi-Family Rentals The Better Investment?

admin — Sun, 04 Dec 2011 01:18:57 +0000

Most property management training and property management consultants start with a real estate property that’s already owned by the investor.

In this article I wanted to take a step back, ignore what you already own, and think about potential future purchases.

As a property management consultant I’m often asked if single-family or multi-family investments are the better choice.

There’s not a right or wrong answer to this question and I think a lot of this answer comes down to what your personal preferences are regarding residential rental property investments.

Is This The Time To Buy?

Either way, as I advise my property management consultant clients, there will certainly be strong opportunities coming up in the residential investment market, on both the single-family and multi-family investment side.

I don’t have a crystal ball, and I’m not ready to advise my property management clients to move just yet. Instead, I think it’s time to keep an eye on the market, do some on-going investment analysis, so that when the time is right you’re ready to pull the trigger and make decisions you’re comfortable with.

My personal view as a property management consultant is that the market hasn’t bottomed out yet.

The way I define a bottomed out market is When there are 10 properties for every one buyer.

Don’t get me wrong, I never suggest trying to time the top or bottom of the market. I’ve personally tried to do this – maybe it’s human nature – and the results are never good.

The definition I like to use of a bottomed market is, “When there are 10 properties for every one buyer.”

So while we’re not at the bottom yet I think we soon will be, and there will soon be excellent investment opportunities for rentals, short-term buy-rent up-flip, and long-term hold positions.

Back To Our Original Property Management Consultant Question

Is it better to invest in single-family or multi-family residential property?

A good property management consultant will go through the investment process step-by-step.

To try and answer this question, let’s start from the end first and take a look at potential exit strategies:

Single-Family Investments

With single-family rental investments there are three main exit strategies:

Sell to an owner-occupant, with the first step being to sell to the tenant renting your home Sell to an owner-occupant who’s not your tenant, which means you’re probably going to need to do a lot of updating and some improvements before you put the single-family rental back on the market. Sell your single-family portfolio to another investor, and let them go through the first steps above. This exit strategy is easiest to do if you own your rental homes free and clear, since you won’t have to deal with each of the lenders involved on the individual properties.

Multi-Family Investments

With multi-family investments your exit strategies are a little more limited, but also require a little less work.

Sell to another multi-family investor Try to “go condo”, assuming planning and zoning allows this and you’ve got sufficient upside to through the time and expense in doing this. After you go condo, sell the individual units using the methods I covered in single-family exit strategies.

Property Management Differences and Investment Appreciation

Two other factors to consider in single-family vs. multi-family investments are the differences in property management and the appreciation between the two property categories.

I’ll cover these topics in future Ezine articles.

Real Estate

admin — Sun, 13 Nov 2011 07:38:57 +0000

Sales and rentals of real estate in the Czech Republic, and especially in the capital, Prague, are booming.

This boom is genuine. It does not flow from the kind of “irrational exuberance” that U.S. economist Alan Greenspan once warned his countrymen to avoid.

The robust health of the real property markets here covers every segment: middle- and high-end residential, hospitality, retail, office and industrial. And it is founded on the strongest economic growth in the country’s history.

The government numbers for last year are out. They show that the Czech Gross Domestic Product, or GDP, remained this year at 2005′s high of 6.1 percent.

Some leading analysts say that this is the peak and that annual economic growth will level off now at a sustainable 5 percent. Household spending remains strong, inflation moderate and long-term investors active.

Of the trio of CEE nations that entered the European Union in 2004 – the Czech Republic, Hungary and Poland — the Czechs far-and-away have blossomed most in the free markets.
Boutique hotels & Serviced Apartments

Much of the strength of today’s Czech economy stems from tourism. Prague, the “city of a thousand spires,” has become also the city of 100 four- and five-star hotels. Leading the way in the last two years has been the march of a phenomenon known as boutique hotels. These are small, often expensive hostelries with individual personalities. A recent example: the Mandarin Oriental, housed in a former 14th century monastery in Mala Strana,

Gentrifying Zizkov

Residential development also is powering real estate action. The present king of this segment is Central Park Praha, part of 50 hectares of land where Zizkov meets Vinohrady, from near Hlavni Nadrazi to Olsanska hrzbitov (cemetery).

At a cost of 4 billion crowns, developer CPP Development is constructing 180 of what it calls “luxury residential apartments,” already virtually sold out at prices from 10 million crowns each to twice that.

CPP Development’s Managing Director Milan Ganik recently told The Prague Post that he is untroubled by the Zizkov neighborhood’s raffish reputation and history. Zizkov won’t tarnish CPP, he said in effect. CPP will gentrify Zizkov.

In the Beginning

After the communist regime fell in 1989, the new Czech government placed privatization of state properties near the top of its agenda. Despite privatization’s many stumbles and missteps, history has validated this strategy.

Privatization and its cousin, restitution, ignited the engines and the energy of private ownership. The result, in just a decade and a half, is evident in the cheery facades, the builders’ scaffolding, the merchandise-stuffed shops and the scurrying crowds that are ubiquitous in Prague, and to a lesser extent in other Czech cities.

The Marrakech Property Market in Brief

admin — Fri, 23 Sep 2011 15:21:03 +0000

Marrakech offers something very different for the more adventurous traveller and overseas property buyer. One of the most beautiful, fashionable, exotic and sophisticated locations in northern Africa, it is very well established as a premier destination and competes alongside Rome, Paris, Prague, Barcelona and Lisbon among others in the lucrative city break tourism market.

With a short travel time (only 3 hours from London) and direct flights from most major European cities, it is easy to see why Marrakech presents such a fantastic opportunity for lifestyle property investors. European visitors are only a short flight away from experiencing a completely different culture and true year round sunshine (333 days per year) – this makes it very hard to resist.

2011 Czech Republic Property Forecast

admin — Sun, 17 Jul 2011 06:32:31 +0000

Introduction

We are headed into the final days of the 2010 calendar year and it is a good time to look back on the property market and see how things went when weighed against what our expectations were in 2009.

Our 2010 forecast predicted a 5 to 7% increase overall in the year. Although numbers are not in for the fourth quarter, it looks like the market did not make this much advance and will end the year largely stagnant. Some reports indicated that the 3Q was seeing stronger movement and demand and this seemed to continue into 4Q.

Well things certainly look more rosy for the property market overall in 2011 than 2010 did. Does this mean we predict prices to grow even more? Well, although we expect it to be a stronger market than 2010 there are still some negative factors which will weigh on the prices.

The two new factors we feel will play into property prices in 2011 are both the large inventories of unsold new flats which developers currently hold as well as upcoming greater number of foreclosures by banks and the subsequent selling of properties at substantial discounts.

Most of the other factors bode well for 2011.

Once again, short of time and don’t have the patience to go through our analysis? Skip to the final page for our conclusions and predictions for the market.

Economic Recovery in the EU and particularly Germany (+)

The EU and Germany in particular seem to have avoided the dreaded double-dip, the threat of which hung over our heads through much of 2010.

Although the EU’s growth has been lacklustre, Germany has been a gem with Q3 having 3.9% y-o-y GDP growth. This is a very positive indicator for Czech Republic since nearly one third of all goods produced in Czech Republic are sent over the border to Germany.

Although Germany’s 2011′s growth is currently predicted to be more tempered than 2010, it will certainly be a top performer in the EU.

Foreign Direct Investment (+)

With 2009′s FDI being about half of 2008′s it is not surprising to see 2010 post big percentage increases over 2009.

By the end of 1H 2010, for example, FDI was reportedly 48% higher than 1H 2009.

It seems that this trend may continue to increase and again show healthier numbers of previous years but still off the peak of 2007/2008.

The crisis had the effect of dampening wage increases, making Czech Republic more attractive for companies which need access to European markets and also a relatively cheap but skilled work force.

An indication of this increased investment in Czech Republic is the increased office and industrial space take-up that we have seen over the last months.

Much of this has been reported to be by existing companies which are expanding their operations in the country. This is an indication that the Czech arms of international businesses are money-making parts of the overall picture.

According to a report from Jones Lang LaSalle, the industrial market is leading the upward trend with the take-up levels in Prague for the first half of 2010 being greater than that of all 2009 combined. The vacancy rate is reported down 14.1%.

Recently there was a chart from Jones Lang LaSalle published which indicates at which point in the real estate cycle the office rents are for each city. The chart depicts the situation as of the end of June 2010 and it was indicated that at that time the prices were close to bottoming out.

King Sturge predicts a 10% increase in commercial real estate transactions as interest in offices and shopping centers increases according to Reuters articles.

Of course, the effect on the residential market will be delayed as the effects of more jobs and a growing economy takes time to flow through to the bulk of the residential property consumers.

Developers With Large Unsold Inventories (-)

At the end of the property ‘gold rush’ there were many new apartment projects built on speculation. Construction costs and land costs for the developer were all at a premium.

For the unfortunate developers whose projects completed in 2009 or early 2010 this means they paid top dollar for the construction but the market was no longer there to resell the flats at the same premium.

The result of this is that many developers are sitting on large stocks of unsold new property, currently unwilling to go down in price. The number of these flats in Prague alone is estimated to be around 3500.

Although the number of flats being held is not huge, we feel that developers will need to lower prices in order to move there flats and this will have a negative effect on property prices in 2011.

Foreclosures by Banks and Unloading Inventory (-)

There was an increase in foreclosures in 2010 estimated at about 10% more than in 2009. However, this is much less than was originally estimated and overall the economic hardiness of Czech households has been very good.

Our conversations with the banks we cooperate with indicate that the number of foreclosures will continue to increase in 2011.

Again, the same as with the newly built stock that developers are holding, the amount of flats are not large enough to make a big impact on prices but will for sure be a dampening effect in 2011.

Wages & Unemployment (+)

In 2009 it was predicted that unemployment would surpass 10% in 2010. However, it stayed just under with the peak measurement being 9.9% in February 2010. Since then it has improved to around 8.5% as of the writing of this report. Estimates see it decreasing to 7.5% in 2011.

The employment situation has remained resilient and this, we feel, will be a strengthening factor for the housing market in 2011.

Wages themselves grew in 2010 which was better than the stagnation of 2009. However, it is estimated to end the year at growth of about 1.5% after being adjusted for inflation.

Although this is not very much, it does show that the purchasing power of households is increasing. This also increases family’s abilities to take on mortgages and save for down payments.

The wage increase will be a slightly positive factor for the housing prices in 2011.

Overall Economic Health (+)

At the end of 2009 it was predicted that Czech GDP for 2010 would fall around 0.8%. The current forecast is for the year to end at around 2.2%, so much, much better than forecast.

If this trend of excessive pessimism (it is not socially acceptable to err on the side of optimism these days) is correct that means the current predictions of 2% will also fall short of the actual.

Good numbers like these do much to bolster citizen’s confidence that the crisis has been averted and they can be sure to have a job and growing income.

This confidence translates into upward pressure for the housing market.

Rents (+-)

In 2010 we saw rental demand stagnate in most areas with a small increase in demand in optimal locations.

At the start of 2011 rent controls for about 450 000 flats in Czech Republic will be finished, allowing the owners to demand market prices for them. What do we expect this to do to market prices overall?

We expect that this will bring a stronger demand on smaller and cheaper rental apartments while larger apartments may fall in rental prices. This is due to the fact that many tenants will look for apartments which matched what they were paying under rent control, even though this means reducing the size of their apartment.

We feel that any movement (if there is any) in rents during 2011 will be muted and have little effect on property sale prices.

Currency Trends (+-)

The CZK has strengthened considerably to the EUR through 2010 and we don’t feel it will have any further effect on the Czech property market in 2011.

Government Budget Deficit (-)

In our 2010 Czech Property Forecast we had felt that there was a strong likelihood we would see an increase in corporate tax, property tax and/or a capital gains tax on property because of the budget deficits the government was running.

So far there have been small increases in property taxes but not in a way that would affect home owners or have any impact on prices.

However, with budget cuts for 2011 being very timid, there will still be need to make more drastic steps in the future to make ends meet, something that even President Klaus has recently admitted.

We feel there is a very strong possibility that new tax measures could be introduced in 2011 which would negatively affect property prices. For sure we wouldn’t see tax changes which would have any positive effect on housing.

Conclusion – Short-term (2011)

When looking at 2011 we feel that the positive factors on the market slightly outweigh the negative and we will see a net growth in property prices over 2011.

How much would we expect to see?

We would expect to see a maximum of 3% year-over-year with much of the growth coming in the spring.

Last year’s spring growth had been stymied by an election which had everyone nervous about the future of their jobs and the economy. These will not be a factor this spring.

Conclusion – Longer-term (2012 to 2013)

Many of the negative factors which will affect growth in 2011 should be more stabilized the end of the year such as the government budget deficit, developers unsold inventories and bank’s foreclosures.

With these negative factors out of the way and the economy continuing to grow we would expect property price growth to increase to the range of 5% per year in 2012 and 2013.

The Cost Saving Benefits of Having a Roommate

admin — Sun, 10 Jul 2011 15:29:16 +0000

There can be little doubt that having a roommate can have a lot of benefits. While it may be true that a bad roommate can be a real ordeal, the facts are that a good roommate can really be of great assistance in a variety of ways. With that fact in mind, let’s take a look at some of the advantages to having a roommate.

One of the most obvious benefits of having a roommate is saving money. When you are investigating apartment rentals, it is a good idea to consider a roommate. Having a roommate means that you have more financial flexibility in terms of paying your rent.

A good roommate, who pays his or her rent on time, can go a long way towards helping you with your bills. If you think you may have trouble making your rent every month, it is pretty hard to argue with the concept of a roommate. Further, having a roommate could also allow you to save more money or pay down debt.

A roommate is a surefire way to afford a larger and nicer apartment than you would otherwise be able to afford. Many times when people are considering an apartment rental, they settle for a less than ideal situation simply because they have not considered finding a roommate. With a roommate covering half of your rent, you may very well be able to rent an apartment that is much more in line with what you want.

Having a roommate will allow you to save for a house or pay down your existing debt. Let’s face it, if you are paying 20% or even 30% on your credit card bills, then it is most definitely in your best interest to pay down your debt and in a hurry! In fact, it is one of the single best financial moves that you can make. Having a roommate can help you facilitate making this happen. If your rent is $1,000 and your roommate is covering half of that amount, you clearly can pocket $6,000 over the course of a year.

The cost benefits of having a roommate can add up in a big way. Multiplied over the course of a year, having a roommate is almost too good of an opportunity to pass up. Just make sure that you do your homework and know whom it is that you are allowing into your space.

Holesovice District, Prague 7

admin — Thu, 02 Jun 2011 12:14:31 +0000

Holesovice in Prague 7 is about 2.5 kilometres north-east of the historical city centre, in the curve of the Vltava River. The area is home to the Holesovice Exhibition Ground, T-Mobile Arena and the Sparta Praha Football Stadium. There is a mixture of buildings in Prague 7, including many old, architecturally beautiful buildings for which Prague is famous.

In the past year and a half there has been an increase in the number of old-style buildings restored to their former glory. The freak floods of 2002 brought damage to Holesovice but happily, since then, the government has invested in river flood defenses to levels higher than those reached by the floods of 2002. As a consequence of this the area of Holesovice is experiencing exciting growth in new residential and commercial development and regeneration in the area.

Completed in 2004 the Lighthouse Tower office block is a local landmark and has brought several high-profile tenants to the area. Along the river the Tower developer has received planning permission to redevelop the old Holesovice Port area into an up-market, mixed-use, marina development. The regeneration will bring a thousand up-market riverfront apartments (with an average price of around CZK69,956/sqm (

The Eastern European Property Boom

admin — Fri, 06 May 2011 18:08:13 +0000

Since the stock market crashes of a few years ago, more and more investors have looked to real-estate for their futures. The only problem is for the average mid income investor, its difficult to come up with enough collateral for that second purchase. Another worry is making the monthly payments if it does not rent as easily as expected.

The home markets of the USA and the EU have long been too expensive for most second home investors, but with the advent of EU expansion, the new markets of the central and eastern European countries are opening to outside investment. Cities such as Prague, Budapest, and Kracow are fantastic centres of culture and historic architecture. They are now experiencing a property boom the like of which has never been seen before.

Properties in Budapest, Hungary’s beautiful capital have seen a steady increase of 20-25% capital growth over the past 5 years, and prices are still 25-30% of the cost of similar western european options. rental opportunities are very good, with returns of up to 12% per annum. Thats a huge $6000p/a per $50,000 investment. With home mortgage markets running interest rates at up to 30%, the local population either need cash, or cannot buy their own homes. This is all due to change with the advent of the single currency, the Euro. When these countries meet the criteria for full EU membership, they will also have a fixed currency, and standardised EU interest rates, currently at under 3%. Mortgages will then be affordable, and prices are expected to skyrocket. Overseas buyers can avail of EU mortgages at 3-6%.

How then are the prices increasing at 20-25% per annum? There are two main reasons, eastern European ex-pats working in the west and saving for their homes. A vast influx of wealth generated in the western EU is going into the fashionable districts in Budapest. When Hungarians overseas can purchase their dream apartment in their capital city for EUR80,000 or $102,000, they can get loans in their country of work and pay these prices off within 4 years. The second source of income is from overseas property speculators. Estate agents are forecasting 45% of all transactions this year are with overseas buyers.

Now is the time to invest, when they sign up to the Euro, it will be too late.

10 Features of Modern Cape Cod Architecture

admin — Sun, 20 Feb 2011 08:49:08 +0000

When you visit Cape Cod, there is no doubt that you are witnessing a unique style of architecture rooted in colonial times when simplicity and functionality where at their best. There are many characteristics of the Cape Cod architecture style that permeate still in today’s modern versions. However, the style has evolved tremendously showcasing more detail and larger living spaces. Here is a list of ten commonly found architectural features found in part of the revival of the modern Cape Cod architecture style:

1. Cedar shake shingles are perhaps the most defining feature of a modern cape cod style home. Although traditionally they could be found with clapboard or brick, cedar shakes have emerged as the most popular modern choice. Visit Cape Cod today and you’ll see it everywhere.

2. Traditional Cape Cod homes tend to be small in size, however, more modern versions are definitely modest in size and sometimes can be relatively sizeable compared to the past. This is of course historically how they were built being minimal and affordable. Nowadays, the style is kept alive, but the modern twist of size, functionality, and added detail are important additions.

3. Steep roofs with narrow eaves were used to combat the harsh weather. This is true even in today’s modern styles and was part of the minimalist concept that contributes to the plain and simple look. This detail has kept constant and is an important element that defines the style and gives it a unique look.

4. A central chimney was often found that would keep the house warm in an economical manner with several surrounding rooms that could take advantage of the chimneys location.

5. Symmetrical front elevations were common in traditional times. Nowadays, we have garages for modern day cars, which has caused the home to crack this pattern.

6. Dormers are part of the modern revival and are utilized in attics to let light and warmth in. They also help create a larger space as bedrooms in the attic have become increasingly popular.

7. Gables were typical with steep pitched roofs. Modern gables can have decorative accents in them or wainscoting showcasing the evolution of detail that has emerged in this style of architecture.

8. Window boxes seem to be everywhere you look on modern Cape Cod style homes. Visit Cape Cod today and you will see some form of window box gardening on nearly every other home or business.

9. Windows are an important traditional feature. Nowadays, details have overcome simplicity. It’s not uncommon to find a bay window or picture window in a modern Cap Cod style home.

10. Try adding functional wood shutters with cutouts in them. This craftsmans touch to a Cape Cod will help modernize it. In the past, shutters were merely decorative accents with no function to them.